Memphis Council members propose rapid increase in pension fund contribution

Memphis City Council Chairman Jim Strickland and councilman Shea Flinn said Tuesday they want to dramatically increase the city's pension fund contributions in the next two years, rather than the five-year time span that mayor A C Wharton has proposed.

That would mean painful decisions over property taxes and possible cuts in major city services such as police and fire protection could come sooner rather than later. The council members argue that it's fairer to the public to make these decisions before the 2015 City Council and mayoral elections.

Wharton has proposed that the city boost its annual pension funding from about $20 million now to about $100 million five years from now. The council members want to make that increase much faster, a step that would necessitate changes in other areas of government. For perspective, the city's budgeted general fund spending in the current fiscal year is $613.4 million.

The concept of short-tracking the pension fund increase is in its early stages. It will likely become part of budget discussions in the coming months. Other members of the 13-person council would have to agree.

The concept came up during public discussions Tuesday about the city's pension fund shortfall, and Flinn and Strickland confirmed their position in an interview after the meeting. In response to a question from Strickland, Tennessee treasurer David Lillard said contributing money to the pension soon would be cheaper than doing so years from now.